180 Billion Unfunded Liability For Public Retiree Benefits
A commission says local and state governments need to set money aside to meet at least 180 billion dollars in health and pension obligations. That’s what’s owed over the next 30 years to California's public retirees….but is not currently funded.
Monday, January 7, 2008
The Commission was appointed by Governor Schwarzenegger. It got the 180 billion dollar figure from a survey of state and local governments. The group estimates the state’s share of that is 48 billion. Chairman Gerald Parsky says the commission’s big recommendation is to start setting money aside now to meet the obligation. Otherwise, he says, future generations will be saddled with it:
“If the policy makers don’t feel that it’s the highest priority then they have to accept the fact that at some point in the future, it’s going to impact the ability to provide other services, other things that may be beneficial to this state to the next generation.”
The Commission also recommends regular independent audits of public pension plans. In a statement, the Governor said he would submit a formal plan to address the issue in the next 30 days